Jakob Christensen, chief analyst at Danske Bank, points out that the ECB turned its back on the dovishly priced market and the market reacted by appreciating the EUR and lowering inflation expectations.

“As for EUR/USD, it is now faced with a Fed ready to cut rates and an ECB who has only started discussing easing. That should keep positive EUR/USD momentum going. We forecast EUR/USD at 1.15 in 6M. A sound US jobs report could temporarily weigh on EUR/USD though, but it should not derail the outlook for a summer Fed rate cut.”